'Engagement Advertisements’

One of the interesting development with respect to social networking is how the companies providing the platforms will make money ('monetization'). One of the most innovative companies in this area is Facebook (see also its business solutions page targeted at advertisers), which was discussed in an insightful article on CNN Money called 'the Facebook economy'.

Forrester Research analyst Jeremiah Owyang discussed on his blog the launch of a a new product called ‘Engagement Advertisements,’ which should integrate with natural user behaviour. These engagement ads should encourage members to interact with the ads by leaving comments, sharing virtual gifts, or becoming fans.